Ch 6 Business test

Steps in the decision making process

1. Recognizing and Defining the Decision 2. Developing Options 3. Analyzing Options 4. Selecting the Best Option 5. Implementing the Decision 6. Monitoring the Consequences

strategic plan

A firm's highest managers develop its ________, which establish the long-range objectives and overall strategy or course of action by which the firm fulfills its mission

agenda

A(n) ________ is like a calendar, containing both specific and vague items, which helps a manager figure out what must be done and how to get it done to meet the objectives set by the organization.

consider its impact on the organization as a whole

Aiden is assessing the appropriateness of a proposed option to resolve his company's product safety issues. When considering the consequences of the option, he should

the stagnant nature of the workforce

All of the following are challenges managers confront in the business world today EXCEPT

eliminates synergy

All of the following are reasons organizing is important EXCEPT

can be developed by any manager in a firm

All of the following are true of strategic plans EXCEPT

brainstorming

Chrissy wants to develop a list of possible courses of action to draw more customers to her shop, so she calls a meeting of her sales staff. Together, they discuss the issue and suggest ideas to solve the problem. This is called

communicating with others about the situation and the company's response to the crisis

Crisis management plans generally cover maintaining business operations during a crisis and

directing

Emma manages workflow at a magazine. She sets and implements the deadlines and encourages the writers and editors to do their work. What managerial function is Emma fulfilling?

effectiveness

Grace manages a beach rental kiosk. Her goal is to run this business in such a way that she achieves the desired result, making a profit and providing her customers with the items they need to enjoy their vacation. Thus, her primary managerial concern is

adapting and releasing new products in the market

Growth objectives essentially relate to

staffing

Hiring people to carry out the work of an organization is known as

efficiency

If a manager is concerned about doing the work with the least cost and waste possible, then his or her primary managerial concern is

the top management

In an organization, decisions regarding adding new products, acquiring companies, and moving into foreign markets would most typically be made by

Isra assumes the responsibilities of all three levels

Isra manages a small coffee house. In fact, this business is so small that Isra is the only manager. What level manager is Isra?

She can watch her employees work to determine the cause of the problem, and then respond appropriately

Jaclyn manages a fast food restaurant. One day, while sitting in the restaurant taking her break, she hears a group of customers complaining about how slow the service has been getting and that they may have to stop eating there. What is the most effective control action Jaclyn can take to resolve the problem?

analytical skills

Knowing how to sort large amounts of information in order to find relevant facts to resolve a problem or issue is an example of ______.

limit hiring to individuals from the chosen demographic groups

Kylene is a manager at a large technology company. Since her company wants to serve consumers from fast-growing demographic groups such as Hispanics, African Americans, and Asian Americans, she wants to hire employees from those groups to help make decisions regarding issues related to consumer diversity. All of the following are rules she should follow in diversity recruiting EXCEPT

tactical plan

Live Wire Collectibles, a company that manufactures action figures inspired by popular video games, creates a strategic plan to be the leader in the product category within a period of three years. The company's middle management also creates a six-month plan to ensure that the objectives of the strategic plan are properly implemented. The six-month plan created by Live Wire Collectibles can be regarded as a(n)

resource allocator

Lloyd is the manager of the marketing department for a large firm. His department was given 3 new computer systems. Lloyd must determine which of his employees should get the new equipment. By doing so, Lloyd is acting as a

autocratic

Pierre is a manager at a women's clothing store. He is very particular about how things are done, right down to how the shirts are folded and the positioning of the mannequins. He uses his authority and economic rewards to get his employees to comply with his directions. What type of manager is Pierre?

transforming resources into goods and services

Production and operations managers are concerned with

first-line managers

Responsible for implementing the plans established by middle management, Direct workers' daily performance, Spend most of their time directing and controlling

analytical skills

Sean is interviewing for a position at a law firm. In the interview, he is asked: "How would you resolve the issue of successfully arguing a case in which you disagree with our client's position?" Answering this question requires Sean to use

free-rein

The ________ style of leadership can be a powerful motivator because it demonstrates a great deal of trust and confidence in an employee and allows employees to meet their work demands with little or no interference

defining the situation

The managers at Hydro Inc. have recognized declining sales on their water purifiers and must decide what to do to improve it. What should be their first step?

objectives are measurable, while goals need not be measurable

The principal difference between objectives and goals is that

networking

The process of building relationships and sharing information with colleagues who can help a manager achieve the items on his or her agenda is referred to as

strategic planning

The top management of Hipster Clothing decides to set up an online store to cater to the changing business environment and reach out to the Hispanic market. The management also identifies that the success of the company will depend on its ability to create and develop new products and processes in the next two years. This is an example of

Operational plans

They apply to details in executing activities in one month, week, or even day.

leader

Tracy is a manager at a law firm. Part of her role is conducting performance reviews for the paralegals in the office. By doing so, she is fulfilling the managerial role of a

He should make sure any goal states exactly what is to be achieved

Trevor is setting goals for his sales team. What should Trevor keep in mind when developing his goal?

It should be clear and concise

Vince starts his own tutoring business. He wants to write a good mission statement that explains his company's reason for existence. What is one guideline he should follow in writing his mission statement?

Strategic plans are long term, while tactical plans are short term

What is a difference between strategic and tactical plans?

Many firms are trying to align CEO compensation with performance

What is true of top management compensation?

tactical plans

What type of plan helps keep the organization on the course established in the strategic plan?

practicality

When analyzing options in the decision-making process, managers must consider the appropriateness and ________ of each option

it may be possible to use a combination of several options

When selecting the best option among a series of possible decisions,

the consequences of decisions may not be apparent quickly enough without monitoring

Which statement best describes the importance of monitoring the consequences of decisions?

Employee empowerment does not mean that managers are not needed

Which statement is true of employee empowerment?

the ability to understand the needs of others

Which trait would be part of a person's human relations skills?

middle managers

Who is responsible for tactical and operational planning in an organization?

Managers or teams of managers at the middle level

Who performs tactical planning in an organization?

Managers

________ make decisions about the use of an organization's resources and are concerned with planning, organizing, directing, and controlling the organization's activities.

mission

a declaration of an organization's fundamental purpose and basic philosophy. It seeks to answer the question: "What business are we in?"

efficiently

accomplishing the objectives with a minimum of resources

authentic leadership

are passionate about the goals and mission of the company, display corporate values in the workplace, and form long-term relationships with stakeholders

organization

establishes lines of authority, improves communication, helps avoid duplication of resources, and can improve competitiveness by speeding up decision making.

Effectively

having the intended result

top managers

include the president and other top executives, such as the chief executive officer (CEO), chief financial officer (CFO), and chief operations officer (COO), who have overall responsibility for the organization

Democratic leaders

involve their employees in decisions

Controlling

involves five activities: (1) measuring performance, (2) comparing present performance with standards or objectives, (3) identifying deviations from the standards, (4) investigating the causes of deviations, and (5) taking corrective action when necessary

Management

is a process designed to achieve an organization's objectives by using its resources effectively and efficiently in a changing environment.

Free-rein

let their employees work without much interference

autocratic leadership

make all the decisions and then tell employees what must be done and how to do it

Directing

motivating and leading employees to achieve organizational objectives

Analytical skills

refer to the ability to identify relevant issues and recognize their importance, understand the relationships between them, and perceive the underlying causes of a situation

middle managers

responsible for tactical and operational planning that will implement the general guidelines established by top management

Tactical plans

short range and designed to implement the activities and objectives specified in the strategic plan

human relations skills

the ability to deal with people, both inside and outside the organization

Conceptual Skills

the ability to think in abstract terms, and to see how parts fit together to form the whole, are needed by all managers, but particularly top-level managers

Planning

the process of determining the organization's objectives and deciding how to accomplish them, is the first function of management

Controlling

the process of evaluating and correcting activities to keep the organization on course

technical expertise

the specialized knowledge and training required to perform jobs related to their area of management

Organizing

the structuring of resources and activities to accomplish objectives in an efficient and effective manner

tactical planning

usually cover a period of one year or less, help keep the organization on the course established in the strategic plan.

Operational plans

very short term and specify what actions specific individuals, work groups, or departments need to accomplish in order to achieve the tactical plan and, ultimately, the strategic plan